scholarly journals APPROACHES TO THE CLASSIFICATION OF TRADE FLOWS IN THE ANALYSIS OF THE STRUCTURE OF COMMODITY EXPORT

Author(s):  
Maryna Kovbatiuk ◽  
George Kovbatiuk

The quality of the analysis of the structure of merchandise exports depends on the groups of trade flows, according to which the study is carried out, therefore, the choice of the classification on the basis of which the analytical study of the export structure is carried out can give answers regarding the choice of the further direction of development of foreign trade. The article discusses the main approaches to the classification of trade flows, identifies their features, advantages and disadvantages. It has been determined that the most common of these are the Standard International Trade Classification (SITC), Lall classification used by the United Nations Conference on Trade and Development (UNCTADstat) and the International Standard Industrial Classification of All Economic Activities (ISGC) or The International Standard Industrial Classification of All Economic Activities (ISIC). The national classification of trade flows includes the Ukrainian Classification of Goods for Foreign Economic Activity (UKT FEA), compiled on the basis of the Harmonized System of Description and Coding of Goods and the Combined Nomenclature of the European Union (used in 207 countries), which promotes the closest relationship between foreign trade statistics and production statistics. Different classifications of trade flows are based on different approaches and different classification features. On the one hand, each classification should cover all groups of goods, on the other hand, show the quality component of exports. The Lall classification, which takes into account the technological complexity of exported goods, is most consistent with these two requirements. This classification is based on the available indicators of technological activity in production. It corresponds to the concept of most analysts regarding the technological rating of manufactured products. The success of a country's export directly depends on the quality of exported goods, therefore, the analysis of the structure of merchandise exports should be based on approaches that take this indicator into account.

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